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DJ ICE Cotton Review: March Gains, Rally Continues
Author： CCFGroup.com Time：Nov 24 2009 8:36AM
CHICAGO (Dow Jones)--ICE March cotton futures hit a 14-month high on Monday,driven higher by renewed weakness in the U.S. dollar, overnight strength in Chinese cotton prices and speculative and fund buying.
Most-active March cotton settled up 44 points at 74.48 cents a pound.
ICE March cotton opened firmer Monday, following news of higher Chinese cotton prices overnight. Also adding to the bullish tone early was news that zero delivery notices were posted for ICE December cotton futures and Monday was ICE December cotton futures' first notice day.
"There were zero deliveries against the December contract. That was friendly,but that may change overnight," said Keith Brown, principal of Keith Brown & Co. "We'll have to see if any deliveries emerge tonight," he said.
Speculative and fund buying was seen early in the ICE cotton market, according to Sharon Johnson, analyst at First Capitol Group. Buying was seen across a number of markets including equities, crude oil, the grains and cotton. But then, "everything just hit a wall at one time. A little reality set in. We just kind of got ahead of ourselves," she said.
ICE March cotton hit an intraday high at 75.67 cents, before trimming those gains into the close to settle in positive territory, but in the lower third of the daily price range.
Johnson also said that trade selling did emerge at the higher price levels in cotton on Monday.
In the news, Ivory Coast exported 116,569 metric tons of cotton in May to October, the first six months of the 2009-10 season, down 5,220 tons, or 4%, on the 121,789 tons shipped in the same period last season, official port data showed Monday.
Settlement prices in cents per pound with intraday range:
Close Change Range
Dec 70.38 -3 72.00-70.29
March 74.48 +44 75.67-74.15
Source:DOW JONES
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